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Crisis leaves recruitment cos in dire straits
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Crisis leaves recruitment cos in dire straits
MUMBAI: A Virtual recruitment freeze in the corporate world has pushed midsized management recruitment firms on the back foot.
Finding the going tough, several of them, mostly in the management consultancy space, are either closing shop or trimming workforce. On an average, employee costs account for more than 60% of their expenses.
Bangalore-based Corecompt Consultants , which provides recruitment consultancy to leading automobile and construction companies, has seen nearly 50% drop in its business this year and has laid off nearly 50% of its employees.
“The situation is very critical. Consultancy business has to find out solutions to survive in the present time,” Corecompt CEO Bimal Chandran told ET.
According to an industry estimate, there are approximately 6,000 management recruitment firms spread across major cities like Delhi, Bangalore , Hyderabad, Chennai, Kochi, Ahmedabad, Mumbai and Pune.
“Management consultancy recruiting business has come down drastically . We have witnessed a fall of more than 50% in our existing business and the future also looks bleak, with most of our clients showing reluctance to hire,” Mumbai-based Shella Consultants head Kapil Gupta told ET. The firm is planning to reduce its employee base by more than 30%.
The firm is planning to reduce its employee base by more than 30%. Usually, year-end months bring good business to recruitment firms, with several candidates wanting to find a new job. But, this year, it has been a tame affair.
“We are not sure how long the situation will persist. If it continues like this, we will have to look for alternative options,” said Kolkata-based Rosni Consultants recruitment manager Arani Gupta.
Most of Rosni’s clients are from the automotive and banking finance services sectors, which have been hit badly due to the credit squeeze.
The firm is planning to reduce its employee base by more than 30%. Usually, year-end months bring good business to recruitment firms, with several candidates wanting to find a new job. But, this year, it has been a tame affair.
“We are not sure how long the situation will persist. If it continues like this, we will have to look for alternative options,” said Kolkata-based Rosni Consultants recruitment manager Arani Gupta.
Most of Rosni’s clients are from the automotive and banking finance services sectors, which have been hit badly due to the credit squeeze.
Source:
http://economictimes.indiatimes.com/quickiearticleshow/msid-3894728.cms
Finding the going tough, several of them, mostly in the management consultancy space, are either closing shop or trimming workforce. On an average, employee costs account for more than 60% of their expenses.
Bangalore-based Corecompt Consultants , which provides recruitment consultancy to leading automobile and construction companies, has seen nearly 50% drop in its business this year and has laid off nearly 50% of its employees.
“The situation is very critical. Consultancy business has to find out solutions to survive in the present time,” Corecompt CEO Bimal Chandran told ET.
According to an industry estimate, there are approximately 6,000 management recruitment firms spread across major cities like Delhi, Bangalore , Hyderabad, Chennai, Kochi, Ahmedabad, Mumbai and Pune.
“Management consultancy recruiting business has come down drastically . We have witnessed a fall of more than 50% in our existing business and the future also looks bleak, with most of our clients showing reluctance to hire,” Mumbai-based Shella Consultants head Kapil Gupta told ET. The firm is planning to reduce its employee base by more than 30%.
The firm is planning to reduce its employee base by more than 30%. Usually, year-end months bring good business to recruitment firms, with several candidates wanting to find a new job. But, this year, it has been a tame affair.
“We are not sure how long the situation will persist. If it continues like this, we will have to look for alternative options,” said Kolkata-based Rosni Consultants recruitment manager Arani Gupta.
Most of Rosni’s clients are from the automotive and banking finance services sectors, which have been hit badly due to the credit squeeze.
The firm is planning to reduce its employee base by more than 30%. Usually, year-end months bring good business to recruitment firms, with several candidates wanting to find a new job. But, this year, it has been a tame affair.
“We are not sure how long the situation will persist. If it continues like this, we will have to look for alternative options,” said Kolkata-based Rosni Consultants recruitment manager Arani Gupta.
Most of Rosni’s clients are from the automotive and banking finance services sectors, which have been hit badly due to the credit squeeze.
Source:
http://economictimes.indiatimes.com/quickiearticleshow/msid-3894728.cms
